Qu v Official Assignee in the bankruptcy of Zeng

[2023] NZHC 917

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2015-404-002256

[2023] NZHC 917

BETWEEN

JIA JUN QU

Plaintiff

AND

THE OFFICIAL ASSIGNEE IN THE BANKRUPTCY OF THE PROPERTY OF JUN ZENG

Defendant

……………………….parties continued over

Hearing:	[On the Papers]
Appearances:	G P Blanchard KC and C Jiang for Plaintiffs
Judgment:	24 April 2023

JUDGMENT OF EDWARDS J

[Quantum]

This judgment was delivered by me on 24 April 2023 at 3.30 pm pursuant to r 11.5 of the High Court Rules.

Registrar/Deputy Registrar

Counsel/Solicitors:

G P Blanchard KC, Auckland Tompkins Wake, Auckland

QU v THE OFFICIAL ASSIGNEE IN THE BANKRUPTCY OF THE PROPERTY OF ZENG [2023] NZHC 917

[24 April 2023]

BETWEEN  JIAN PING WANG

Second Plaintiff

YAN QU
Third Plaintiff

J M BUILDING MATERIALS COMPANY LIMITED

Fourth Plaintiff

FORMODA REAL ESTATE
DEVELOPMENT COMPANY LIMITED
Fifth Plaintiff

AND  J & H DEVELOPMENT LIMITED

(in Liquidation) Second Defendant

HUIMAN ZHAO
Third Defendant

[1]                 In my judgment dated 25 November 2022, I found Ms Zhao liable for dishonest assistance in relation to the Flagstaff Land Loans and Flagstaff Construction Loans.1 I also found her liable on the knowing receipt cause of action.

[2]                 The judgment was for liability only. I sought further submissions on the quantification of the plaintiffs’ loss and in particular the calculation of interest. Further submissions were received by me on 5 April 2023.

[3]                 In light of those submissions, I am satisfied that interest should be awarded from 23 February 2017. This is the most beneficial date for Ms Zhao and is the relevant date whether the Judicature Act 1908 or the Interest on Money Claims Act 2016 applies. The interest rate shall be calculated in accordance with the Interest on Money Claims Act.

[4]                 The submissions confirm that the possibility of double recovery may be addressed by deducting the sum awarded for the knowing receipt cause of action ($185,810) from the damages awarded for the dishonest assistance cause of action ($8,771,009) leaving a balance of $8,585,199.

[5]Accordingly, I enter judgment as follows:

(a)Ms Zhao shall pay the plaintiffs the sum of $8,585,199 for dishonest assistance in relation to the Flagstaff Land Loans and Flagstaff Construction Loans.

(b)Ms Zhao shall pay the plaintiffs the sum of $185,810 for knowing receipt.

(c)Interest shall accrue on the sums set out in (a) and (b) above from     23 February 2017 until the date of payment. The interest rate shall be calculated in accordance with the Interest on Money Claims Act 2016.

1      Qu v The Official Assignee in the Bankruptcy of the Property of Zeng [2022] NZHC 3114.

(d)The     claim     for     dishonest     assistance     in     relation     to     the Misappropriated Funds is dismissed.

(e)Ms Zhao shall pay the plaintiffs’ costs and disbursements in the sum of

$19,722.

Edwards J